Cara Community GSM: B2 Gold 11-2020 update

B2 Gold (NYSE: BTG) (TSX: BTO) updated 11-17-2020

Market Cap:       $6.85 B (USD)                    Share Price:        $5.68 (USD)

Shares outstanding: 1,040,661,000

Cash:  $365.46 M as of 30 Sept 2020

Long-Term Debt: $25.84 M as of 30 Sept 2020

Current operations: Yes. Producing mines in Mali (Fekola), Namibia (Otjikoto), and The Philippines (Masbate) and a Colombia development project (Gramalote)

Insider holdings: Low.                    Institutional: 328 holders representing 78%

CEO: Clive T. Johnson.                    HQs: Vancouver, BC, Canada.

2020 estimated Gold production of 1.000-1.055 million oz at about $800/oz All-In Sustaining Cost

Liabilities include $225 million in deferred income taxes and $88.48 million in mine restoration costs, in addition to the stated (above) $25.84 million long-term debt. However, the company is now a huge cash generator with 2020 projected cash flows of over $900 million from operating activities.

Q3 highlights:

  1. Total Production of 268,813 oz. gold. Includes 15,080 oz. attributed to Calibre Mining.
  2. AISC (stated) $766 per oz. sold.
  3. GAAP earnings $0.25, Non-GAAP $0.15 per share on revenue of $487.16 million.
  4. Sold 253,200 gold oz. at an average realized price of $1924 per oz.
  5. Record cash flow from operations of $310 million.
  6. Repaid the outstanding Revolver balance; full $600 million is available.
  7. The huge Fekola mine in Mali (representing ~60% of total production) continues operations unimpeded by political unrest.

Bottom line:

  • Some jurisdictional risk (Mali), but the recent military coup seems to have not affected the operations
  • The company has had a meteoric rise, going from zero production in 2007 to over 1,000,000 oz. this year
  • Will it continue to grow or turn into a ‘dividend’ stock is a good question
  • I have been a Clive Johnson fan for almost 40 years, and so B2 Gold is my largest Goldminer holding with a current portfolio weighting of +8.49%
  • Price is presently quite attractive with a 28-30% potential upside within 3 to 4 months

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